Allis-Chalmers Energy Inc. and its subsidiaries agreed Wednesday
to pay $1.9 million to settle two class actions alleging the oil
and gas servicing company only paid its field operators regular
daily wages even though they often worked overtime.
The $1.9 million settlement will end a pair of state and federal
class actions filed in Pennsylvania in 2011 and 2010, respectively,
alleging that Allis-Chalmers, which didn't admit its liability,
skimped on overtime pay, according to the agreement.
Much of the class is made up of operators whose duties mostly
consisted of manual labor in transporting, installing and
maintaining oil and gas drilling equipment, including fluid lines
and air compressors. They were paid a daily rate and were
classified as nonexempt from overtime compensation under the Fair
Labor Standards Act, the agreement said.
R. Schalman-Bergen of Berger & Montague PC, who represents
the plaintiffs, said that the lawsuit "has been amicably resolved
to the Parties' mutual satisfaction." Attorneys for the defendants
didn't immediately respond to requests for comment Thursday.
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